The life of an accountancy student is no joke. They are often juggling among multiple works and studies with no time to party or rest. On top of it, when they are not well acquainted with the crucial parameters, then it is common for them to seek help from the web searching, ‘accounting equation assignment help’ or look for an answer to ‘what is the accounting equation’.

Accounting equation is based on the understanding of how the three elements, Assets, Liability and Owner’s Equity are related to each other.

Here is the general accounting equation:

Assets = Liabilities + Owner’s Equity

Assets are the resources of the company. They represents the valued items owned by the company like the inventory, cash, insurances, company’s vehicles, equipment belonging to the company, investments, properties, etc.

Liabilities are the amount the company owes to the suppliers or creditors. They are denoted as the legal obligation or a claim against all the company’s assets. It may include payable accounts, wages, income taxes, payables, etc.

Owner’s equity is also known as net assets. It represents the source of business assets. When the business chooses to sell off their assets to pay the liabilities, the excess money that is left is regarded as owner’s equity.

These are the following components which fall under the owner’s equity formula.

Owner’s Capital: Here, the owner’s capital is the permanent account which maintains the cumulative balance of income, losses, and draws over time.

Withdrawals: This is the amount of assets that are taken from the company by the owner. The net income remains close to the capital account, irrespective of the loss the company suffers, or amount of income earned. The final result reflects in the equity balance sheet.

The basic of accounting needs to be strong before getting into the complexities of the equation. To get more help with the complexities of the accounting help, students can always hire a professional assignment expert. An assignment helper will positively produce quality work within the promised time.

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